(TXT) Textron Incorporated – Bull of the Day

Textron Inc (TXT) was upgraded from Neutral to Outperform following a solid earnings report and positive earnings surprise. The beat was due to strong performance by the Bell division of the company and other operational improvements. The company is also lowering its risk profile through liquidation of non-captive finance receivables to focus more on its core manufacturing business.

Textron Inc. is a global multi-industry company that manufactures aircraft, automotive engine components, and industrial tools. It is also a provider of solutions and services for aircraft, fastening systems, and industrial products and components.

Textron reported strong second quarter 2012 earnings of $0.58 per share versus $0.29 per share in the year ago quarter. The quarterly result also comfortably surpassed the Zacks Consensus Estimate
of $0.44. Higher numbers for the company were due to strong performance at Bell, continued improvement at Cessna, complemented by good performance in the Industrial business. We believe TXT can expand its multiple from here and thus upgraded our recommendation from Neutral to Outperform, indicating that the stock will perform better than the market. Our target price is $33.00 or 15.7x 2012 EPS, reflects this view.

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.

Comments

Powered by Facebook Comments


Similar Posts: | | Conglomerates | Conglomerates

RSS feeds: Textron Inc. | TXT | Conglomerates | Conglomerates |

Other Posts by | RSS Feed for this author